On July 12, Dalian North Oil Product Storage & Transportation Co. Ltd. (Dalian North Oil Product) a subsidy of ZhenHua Oil, officially inked a crude oil purchase and sales contract with Daqing Lianyi Petrochemical Co. Ltd. and Dandong Petrochemical Co. Ltd. respectively, and completed payment of the first trade, giving indications that Dalian North Oil Product has officially extended its business to the crude oil sales sector while engaging in crude oil storage. As the intermediary between these two companies, Dalian North Oil Product will effectively utilize its crude oil sales qualification and resell about 14,000 tons of crude oil to Dandong Petrochemical Co. Ltd., monthly.
Dalian North Oil Product obtained the Certificate of Approval for Crude Oil Sales and Operation from the Ministry of Commerce in November 2015, and became among the few enterprises with this license in addition to PetroChina, Sinopec and CNOOC. Due to the limitation of the business qualification requirements on the origin of trading crude oil, Dalian North Oil Product and the relevant departments at the headquarters jointly analyzed and interpreted the policies, actively researched the upstream and downstream resource markets, and strove to explore the crude oil sales channels. Recently, with strong backing from the headquarters and constant efforts of both sides, satisfactory progress has been made. After the field investigation in Daqing Lianyi Petrochemical Co., Ltd. and Dandong Petrochemical Co., Ltd., all parties negotiated further and finally reached a consensus to establish the cooperation.